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He is currently leaning towards cuts, but watching carefully for signs of improvements in market functioning and output, and aware of the risks of his inflation forecast being wrong. Fed’s Lockhart: Economic Outlook From Atlanta Fed President Dennis P. Lockhart: The Economy in 2008 Looking to 2008, I believe the pivotal questionÃƒÂ¢Ã¢â€šÂ¬Ã¢â‚¬Âthe
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Another possibility is the Fed doesn’t want to cut rates due to inflation risks, and might see a tax cut as sufficient potential support for demand to allow them to not cut rates and instead address the inflation issue. This would be based on the mainstream notion (not mine) that monetary policy
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All that matters is their ability to keep buying new paper or, if they can’t, whether someone else steps in to buy it. That helps sustain aggregate demand. The rest is just rearranging of financial assets. On Jan 6, 2008 1:29 PM, Russell Huntley <[email protected]> wrote: > > > > The Baltimore
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If conveying information is considered important for market function, why not just say it clearly and directly in a targeted announcement? Kohn Says Fed Is Trying to Signal When Views Shift `Materially’ 2008-01-05 11:15 (New York) By Scott Lanman and Steve Matthews (Bloomberg) Federal Reserve Vice Chairman Donald Kohn said the central
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Dear Philip, Yes, as in my previous posts, bank stability is all about credible deposit insurance. I would go further, and have all regulated, member banks, be able to fund via an open line to the BOE at the BOE target rate. That would eliminate the interbank market entirely, and let all
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On 03 Jan 2008 20:05:33 +0000, Prof. P. Arestis wrote: > Dear Warren, > (snip) > > One point is this: some more extreme people would argue that low inflation > is both a necessary and sufficient condition for optimal longterm growth and > employment. Dear Philip, Agreed, and we will soon
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On 04 Jan 2008 22:29:03 +0000, Prof. P. Arestis wrote: > Dear Warren, > > Many thanks. > > This is all interesting. The sentence that caught my eye is this: “A fiscal > package is being discussed to day by Bernanke, Paulson, and Bush. That > would also reduce the odds
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(an interoffice email) Good report, thanks! On Jan 4, 2008 10:41 AM, Pat Doyle wrote: > > > > Pre- August 2007 GC US Treasury’s repo averaged Libor less 17 across the > curve. In early August and again in early December the spread between GC > and Libor hit it’s wides
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